inuing operations for the year
ended December 31, 2007, included a $20.0 million gain on the sale to
Optimer of marketing rights to the investigational drug Difimicin (Par
101), a $4.5 million investment gain on the sale of shares of Optimer
common stock, and net settlement gains of $0.6 million. These benefits were
tempered by $19.2 million of costs related to business development
activities in support of Strativa, the Company's branded division, a $6.0
million loss on investment, $1.6 million of severance costs, as well as the
aforementioned $4.6 million of additional share-based compensation expense
recorded in the fourth quarter. Adjusting for these items, income from
continuing operations for the full year ended December 31, 2007 was $55.1
million, or $1.59 per diluted share. By comparison, and in addition to the
fourth quarter 2006 events cited above, reported GAAP income from
continuing operations for the full year ended December 31, 2006 included a
write-off of approximately $10.0 million in bad debts for invalid customer
deductions that the Company determined would not be pursued for collection,
full year severance costs of $12.4 million, the write- down of an equity
investment, an arbitration settlement, and an asset impairment. Finally,
reported income from continuing operations for 2006 also included a $3.1
million gain related to a settlement agreement and a $1.9 million loss on
the return of inventory related to the same agreement. After adjusting for
these items, income from continuing operations for 2006 was $21.5 million,
or $0.62 per diluted share. See reconciliation between reported (GAAP) and
adjusted income from continuing operations at the end of this press
release.

Full Year 2007 Review

Total revenues of $769.7 million for the year ended December 31, 2007
increased 6.1% compared with the year ago period, driven by gains from
Strativa, the Company's branded division. Strativa revenues increased 72.1%
from the prior year to $84.7 m'/>"/>

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